Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most households, there typically seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to try. While a handful may not be required, furnace replacement is an example of a project that could be key to keeping your home comfortable through the cooler months in Brandon.

Purchasing a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you must select a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Brandon Heating and Plumbing, the experts will help you select a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your family will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Brandon Heating and Plumbing a call at 204-728-0180. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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